Axon CEO Rick Smith. Photo Credit: Jim Poulin, Phoenix Business Journal
A movie phrase made famous by Poltergeist apparently is the long rumored reality as Axon is purportedly readying to return its immensely unpopular apartment plan to Scottsdale decision-making dais.
And in the “you can’t make this up” category, they are apparently targeting Planning Commission and City Council hearings immediately after the election on November 13th and November 19th. Too cute by half, but more on that later.
Readers will recall the extreme controversy earlier this year when Axon reneged on its pledge to build a new corporate campus near Hayden and the 101 previously approved by the Scottsdale City Council and with what many would call a financial subsidy, unless it received an additional subsidy in the form of some 2,000 new apartments to adjoin its new corporate office. This apartment project would be the largest in city history, dwarfing the 1,300 units approved just down the 101 for Optima a couple of years ago.
The stunning and unnecessary number of apartments, in a submarket that already has thousands under construction or already approved, stirred a resident outcry from the adjoining Stonebrook HOA.
The plan’s proximity to Scottsdale Airport led its commission to unanimously reject Axon’s plan. Also, let’s not forget Axon’s bumbling and ethically challenged efforts to possibly intimidate Planning Commissioner Christian Serena, according to media reports and Serena’s own account. Axon denied the claims.
Others have questioned not just Axon’s bait and switch with Scottsdale, now asking for apartments to accompany its headquarters, but one with the Arizona State Land Department, from whom it purchased the land. Sales of State Trust Land benefit Arizona public schools, but in selling the land to Axon, the State never contemplated apartments there, an addition that would have meant another approximately $150 million for Arizona school children.
The Governor’s Office, Scottsdale and even Axon are now saying there will be an “equalization payment” were their apartment zoning approval be granted, but who is going to make sure? Some arcane commission? Who? Do any politicians really want to be engaged in a scandal that will be seen as ripping off Arizona’s schoolchildren?
More recently, Axon has not been so subtle in private meetings with councilmembers that alternate uses could be far worse. Specious threats at best when other uses would have to go through new zoning too, and there just aren’t a lot of things worse than 2,000 apartments.
In addition to all of this, consider that Axon’s stock price has skyrocketed, calling into further question why a multi-billion dollar corporation needs an apartment subsidy.
The stink around all of this compelled Scottsdale City Councilwoman-Elect Jan Dubauskas to publicly oppose the Axon plan. She won outright in July, partially a result of her principled stance. Scottsdale City Council candidate Adam Kwasman has committed to residents that he too is opposed. The only council candidate to support Axon was Justin Laos. He finished last in the primary.
This all helps explain why Axon’s plans – opposed by nearly 80% of Scottsdale voters according to the only publicly released poll on the issue – now seek refuge in a lame duck city council session.
So many questions remain with significant political fallout and reputations at play.
Who with City of Scottsdale staff approved this timing, especially the conspicuous allowance of but 6 days between Planning Commission and City Council?
Due to the highly complicated development agreements in place, will 4 or 5 votes be required for approval? Is this litigable?
Will there be a referendum to stay any Axon approval, should they get one, and place the matter on Scottsdale’s 2026 ballot?
Will Councilwoman and current candidate Tammy Caputi abide by her private assurances to many that she opposes Axon’s plan flip her position after the election?
Will Betty Janik, who fought Shawn Yari’s significant entitlement approvals at Scottsdale and Camelback during a December, 2020 lame duck session while a Councilwoman-elect, stand by her ethic on lame duck sessions now that she is a Councilwoman?
Will Councilwoman Solange Whitehead, who has also given assurances to residents of opposition, maintain this position as she enters re-election mode for 2026?
What will Mayor Ortega do, win or lose, over the next month as this issue comes to the forefront during his competitive race with former Councilwoman Lisa Borowsky, an opponent of the Axon plan?
And what about Tom Durham? Many write him off as a Yes Man for any apartment proposal, but his is a far more fair and nuanced mind than that, especially when he too has told residents he is not a Yes vote for Axon.
Axon is to blame for this saga. It is not for Mayor Ortega and the Scottsdale City Council to literally bail them out. Would it be nice to have Axon’s headquarters in the city? Of course, but not like this. City leaders just proudly announced ASM’s relocation here. In many ways the city is on a roll, on many fronts. With or without Axon Scottsdale will still be the envy of the Valley and one of the better cities in America. In many ways justifiably saying no to Axon reinforces the Scottsdale brand much more so than prostituting itself.
Poltergeist indeed. A movie and zoning sequel Scottsdale can do without.